* Graphic: 2020 asset performance
* Graphic: World FX rates in 2020 By Marc JonesLONDON, Nov 10 (Reuters) - Stock markets and commoditiescontinued to push higher on Tuesday, after the euphoria of acoronavirus vaccine had sent global equity indexes soaring to anall-time high and halted the bond rally.
Having surged 4% on Monday on the vaccine breakthrough fromU.S. and German drugmakers Pfizer and BioNTech there was a drop in the pace in Europe, though things were stillshuffling forward. The pan-European STOXX 600 was up another 0.4%,taking November's rally past 13% and though Wall Street lookedset for a slow start, there was a further 2.7% rally in Europeanbanks as worries about mass loan defaults and even morenegative interest rates continued to ease. "We have some consolidation in markets but I don't thinkit's surprising given the size of the moves yesterday," said JPMorgan Asset Management's Hugh Gimber."The news we had was clearly a big step forward... it's abig piece of the jigsaw to getting the global economy back onits feet."Asian markets had been playing catch-up overnight, havingbeen closed when Monday's news of the vaccine broke, althoughlike Wall Street overnight, they lost momentum by the end of thesession.
Particularly encouraging was that the vaccine's trials hadshown it to be more than 90% effective in preventing infection,much higher than expected. Japan's Nikkei 225 ended up nearly 0.3% after being1.1% higher in early trading which set a new 29-year high.Australia's S&P/ASX 200 closed 0.7% higher aftertrading up as much as 1.6%, Hong Kong's Hang Seng endedup 1.1% and Singapore , the Philippines andThailand gained 5.2%, 4.1% and 3.4% respectively.World airline stocks , which have been amongthe hardest hit by the pandemic, soared over 8%. There was weakness in China, though, with the CSI300 Index slipping 0.6%. Analysts attributed the decline to the heavy exposure ofChina's indices to tech stocks, which came under pressure asinvestors bet on less consumer reliance on technology if avaccine leads to an easing of movement restrictions.U.S. tech had suffered on Monday too, Deutsche Bank's JimReid pointed out. The Nasdaq dropped 1.5%, COVID-19's video chatposter child Zoom fell 17% and sit-on-your-sofa winner Netflixslumped 8.6%. The Nasdaq was also set to open lower againlater. "It was like a big piece of elastic," JPMorgan's Gimber saidabout moves of COVID-19 winners and losers. "The further youstretch it the sharper it reverts, and the news of the vaccinewas the catalyst for that reversion yesterday."GAME CHANGER
The vaccine optimism was shared across all major assetclasses. Oil prices were edging higher again in London tradingafter posting the biggest one-day percentage gain in five monthson Monday.The overnight rise had prompted some traders to take profit.In contrast to Pfizer and BioNTech's news, Brazil's healthregulator suspended trials for China's Sinovac vaccine afteradverse side effects had emerged. While stocks have also rallied on the assumption thatDemocrat Joe Biden would be the next U.S. president, the topRepublican in U.S. Congress on Monday did not acknowledge Bidenas president-elect, raising concerns about a rough transition ofpower.
"No surprises but it's essentially a rotation ... what wasbought in the last eight months is now being sold and what wassold is being bought," Citigroup global markets directorElizabeth Tian said.Early on Tuesday, Japan's Prime Minister Yoshihide Suga hadinstructed his cabinet to design a fresh stimulus package aswell. .In the currency markets, the yen strengthened as much0.4% to 104.96 per dollar, while sterling was lasttrading at $1.3230, up 0.5% on the day. The risk-sensitive Australian dollar edged up 0.1%versus the greenback at $0.7279, while Turkey's lira gaveback nearly 2% of the 5.7% surge it saw on Monday after thecountry's top economic chiefs were replaced.
The vaccine news had also sent long-dated U.S. Treasuryyields skyrocketing on Monday in their biggest one-day jumpsince March. The yield curve, an indication of risk appetite,hit its steepest level since March. Bonds had their biggest selloff since recoiling from Marchpeaks. The yield on benchmark 10-year U.S. government debt , which rises when prices fall, jumped 10.3 basispoints on Monday and held above 0.9% on Tuesday at 0.9099%.In Europe, German Bund yields were near their highest in amonth too, and Brent oil futures rose 9 cents,or 0.2%, to $42.49 after their 8% vault the previous session. "OPEC+ will now feel confident that a solution is actuallyon the horizon which will cure the oil markets current demandproblem. It is not a pie in the sky, it is real and the solutionis on its way," said Bjarne Schieldrop, chief commoditiesanalyst at SEB.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Global assets Global currencies vs. dollar Emerging markets MSCI All Country Wolrd Index Market Cap Stocks hit new highs ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Scott Murdoch in Hong Kong and LawrenceDelevingne in Boston; Editing by Richard Pullin, Ed Osmond andBernadette Baum)
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